Mr. Troy Grant reports

ELCORA RESOURCES ANNOUNCES THE RESULTS OF THE FIRST PHASE OF TEST WORK TO CREATE GRAPHENE OPTIMIZED GRAPHITE CRYSTALS

Elcora Resources Corp. has released the results of the first-stage testing of the Sakura Ragedara graphite's suitability for the production of high-expansion-ratio expandable graphite. The Oct. 14, 2014, report titled "Expandable Graphite Tests - Step I: Size Class Reduction I" by Dr. Ian M. Flint reports on the results of tests conducted by SGS Canada Inc., Lakefield, Ont.

This first stage of testing was for the purpose of characterizing the size reduction of the graphite and to produce samples for further processing. These successful tests are the first stage of a four-step process to develop a circuit that will minimize processing damage to the graphite crystal morphology while optimizing flake expandability and ultimately effective conversion to graphene. The highlights of this report are the following:

• Samples have successfully been produced to allow progression to secondary size reduction tests scheduled to be conducted on Oct. 23 and Oct. 24, 2014;
• An important first step toward the eventual target of producing pristine graphite crystals for the next stage of size reduction has been achieved;
• The high rate of flotation indicates that crowded froth flotation could be an effective mechanism of producing high grades early in the circuit;
• Successful flotation without reagents at both high grade and recoveries indicates that a scalping circuit could be used, resulting in less circuit complexity and lower capital costs.

The head grade of the Ragedara graphite was determined to be in the range of 94.4 per cent (plus or minus 2.6 per cent) to 97.9 per cent (plus or minus 2.6 per cent), which falls within the anticipated range and confirms earlier tests performed by SGS Lakefield on Sakura Ragedara graphite.

Troy Grant, president and chief executive officer of Elcora, stated, "The accelerated pace at which we are streamlining the proposed production process for Ragedara, and lab testing the ability to produce graphene and other high-value materials from the Ragedera graphite is highly exciting for the company and shareholders, and these milestones should create demonstrable future value for the shareholders."

A second stage (step II) of advanced testing of the size reduction program will be performed on the material prepared by SGS Canada as part of this next round of tests. These step II tests scheduled for later in October, 2014, will further reduce the size of the particles to that of the individual graphite crystals by liberating the individual graphite crystals from other graphite, and from the silica and other impurities.

It is anticipated that the final processed graphite crystals will be liberated but not either bent or folded, thus, will give a true particle size distribution. The results of this work will be used to define the first of the stages in a process to create graphene-optimized graphite, and will be incorporated in the design work for and the economic evaluation of a possible future processing mill.

Elcora's vice-president, processing and refining, Dr. Flint, PEng, is the qualified person as defined under National Instrument 43-101 who has reviewed and is responsible for the technical information presented in this news release.

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